We find Union Pacific to be overvalued versus Trinity Industries. Here are the factors we considered:
P/S Ratio
UNP's P/S multiple of 7.6x is
significantly higher than the figure of 1.6x for TRN
Revenue Growth
Over the last twelve months, Union Pacific has seen revenues change by -10.4% -
much higher than the figure of -40.9% for Trinity IndustriesIn the twelve-month period before that, revenues for Union Pacific had changed by -5.2% -
much lower than the 16.8% change for Trinity Industries
Operating Margin
Union Pacific's operating margin was 39.8% for the most recent twelve-month period, which is
much higher than Trinity Industries's operating margin of -16.4%Over the last twelve months, the operating margin for Union Pacific changed by -0.7 pp (percentage points) -
much better than the change of -29.6 pp for Trinity IndustriesIn the twelve-month period before that, the operating margin for Union Pacific had changed by 3 pp -
better than the change of -0.3 pp for Trinity Industries over the same period
Union Pacific Trinity Industries Valuation: Current Market Cap $146 Bil $2.9 Bil Current P/S Multiple 7.6x 1.6xUnion Pacific significantly higher Revenues: Total Revenue (LTM) $19 Bil $1.8 Bil LTM Revenue Growth (Current) -10% -41%Union Pacific much higher LTM Revenue Growth (Year-ago) -5.2% 17%Union Pacific much lower Operating Income/Margin: Operating Income (LTM) $7.7 Bil $-293 Mil Operating Margin (LTM) 40% -16%Union Pacific much higher LTM Margin Change (Current) -0.7 pp -29.6 ppUnion Pacific much better LTM Margin Change (Year-ago) 3 pp -0.3 ppUnion Pacific better